SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

1997 Supreme(SC) 888

1997(7) Supreme 248
SUPREME COURT OF INDIA
S.C. Agrawal and S.C. Sen, JJ.
K.L. Rathee -Petitioner
versus
Union of India & Ors. -Respondents
Civil Writ Petition No. 15434 of 1984
Decided on 7-7-1997
Counsel for the Parties :
For the Petitioner : S. Balakrishnan, S. Prasad, M.K.D. Namboodiri, Advocates.
For the Respondents : K. Lahiri, Sr. Adovcate, G. Venkatesh Rao and C.V. Subba Rao, Advocates.

Headnote:Constitution of India-Art. 32-Writ Petition-Liberalised Pension Formula introduced on 25.5.1979-Revised method of calculation of pension based on slab system-Benefit of Liberalised Formula made available only to those Government servants who retired on or after 31.3.1979-Writ Petition challenging fixation of cut off date-Allowed-Orders extending benefit of judgment in D.S. Nakara s case to all pensioners covered by CCS (Pension Rules) as well as Liberalised Pension Rules, 1950-Average pension is to be computed on average emoluments drawn during the last 10 months of service-Claims made for identical amount of pension to every retired person from same rank irrespective of date of retirement-Disallowed.

       Held : According to the clarification issued by the Ministry of Finance, the revised pension is to be computed on the average emoluments drawn during the last 10 months of service. This rule will apply to all the pensioners. However, the definition of emoluments as in force at the time of the retirement of an employee has not undergone any change. The case of the petitioner is that following Nakara s case he has to be given the same amount of pension as other employees of his rank irrespective of the date of retirement. (Para 4)

       Nakara s case (supra) dealt with the manner of calculation of pension on the basis of average emoluments of a retired Government employee. Prior to the liberalisation of the formula for computation of pension made by the memorandum dated 25th May, 1979, average emoluments of the last thirty months of service of the employee provided the basis for calculation of pension. The 1979 memorandum provided that average emoluments must be calculated on the basis of the emoluments received by a Government servant during the last ten months of the service. That apart, a new slab system for computation of pension was introduced and the ceiling on pension was raised. As a result of these changes, the pensioners who retired prior to the specified date suffered triple jeopardy, viz., lower average emoluments, absence of slab system and the lower ceiling. It is to be seen that the judgment did not strike down the definition of emoluments . It merely held that if pension was to be calculated on the basis of the last ten months emoluments of a Government servant, after 1.4.1979, there is no reason why those who have retired before 1.4.1979 should get pension calculated on the basis of average of last thirty six months emoluments. In other words, the rule of computation must be the same. This court did not hold that those who have retired before 1.4.1979 must be treated as having the same emoluments as those who retired on or after 1.4.1979 for the purpose of calculation of pension. Therefore, on the strength or Nakara s case (supra), the petitioner is not entitled to ask for computation of pension with reference to emoluments which he never got. (Para 6)

       The average of the last ten months emoluments must form the basis for calculation of pension. That means those who were actually drawing larger emoluments in the last ten months of their service will get larger amounts of pension. Nakara s case does not lay down that the same amount of pension must be paid to all persons retiring from Government service irrespective of the date of retirement. This principle of adopting last ten months emoluments as the basis for calculation of pension must be uniformly applied to all persons drawing pension from the Central Government. This was all that was laid down in Nakara s case. It, however, did not lay down that the quantum of emoluments drawn during the last ten months of service of each Government employee must be taken to be the same for this purpose. (Para 7)

       

JUDGMENT

Sen, J.-On 1.5.1968 the petitioner retired from Government service as Secretary, Industrial Licensing Policy Inquiry Committee and Joint Secretary to the Government of India in the Ministry of Industrial Development and Company Affairs, New Delhi. The petitioner got pension and other retirement benefits according to the Government rules in force at that time. On 25.5.1979 the Government of India introduced Liberalised Pension Formula. The main feature of this Formula was that it introduced revised method of calculation of pension based on slab system and raised monthly pension to Rs. 1500/- per month. The benefit of the Liberalised Pension Formula, 1979 was made available only to those Government servants who retired on or after 31.3.1979. A Writ Petition was filed in this Court challenging the fixation of the cut-off date of 31.3.1979 for payment of liberalised pension. It was claimed that irrespective of the date of retirement the benefit of the Liberalised Pension Formula must be made available to all the pensioners. This Court upheld the contention of the petitioner and held that all the pensioners governed by 1972 Rules will be governed by this liberalised scheme of pension irrespective of the date of their retirement. In that case, D.S. Nakara & Ors. v. Union of India & Ors.1, it was argued on behalf of the petitioners that all petitioners entitled to receive pension under the relevant rules formed a class irrespective of the date of their retirement. There could not be a mini classification within this class. The classification based on retirement before or subsequent to the specified date was invalid. The scheme of liberalisation in computation of pension must be uniformly enforced with regard to all pensioners.

2. On the basis of the judgment of this Court on 22.10.1983 the Government issued orders extending the benefit of the judgment to all pensioners covered by CCS (Pension Rules) as well as Liberalised Pension Rules, 1950.

3. After promulgation of the Order dated 22.10.1983 doubts arose regarding the extent of the benefit of various liberalisations made from time to time in Pension Rules. It was clarified by the Government that only the benefit to this liberalisation should be allowed to all pensioners as had been mentioned in the Government Orders dated 22.10.1983. In all other respects the rules, prevalent on the date of retirement of the pensioners, will apply.

4. According to the clarification issued by the Ministry of Finance, the revised pension is to be computed on the average emoluments drawn during the last 10 months of service. This rule will apply to all the pensioners. However, the definition of emoluments as in force at the time of the retirement of an employee has not undergone any change. The case of the petitioner is that following Nakara s case he has to be given the same amount of pension as other employees of his rank irrespective of the date of retirement.

5. The case of the petitioner is that the judgment in Nakara s case leaves no room for doubt that there should be no discrimination among the persons getting pension from the Government. There cannot be any classification among the retired Government employees on the basis of date of retirement. Therefore, they must be given higher pension on the same basis as it was being given to persons who have retired after 1st April, 1979.

6. We are unable to uphold this contention. Nakara s case (supra) dealt with the manner of calculation of pension on the basis of average emoluments of a retired Government employee. Prior to the liberalisation of the formula for computation of pension made by the memorandum dated 25th May, 1979, average emoluments of the last thirty months of service of the employee provided the basis for calculation of pension. The 1979 memorandum provided that average emoluments must be calculated on the basis of the emoluments received by a Government servant during the last ten months of the service. That apart, a new slab sy














Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top